Can we deregister and use the OSS instead?
Q. We are a large building business and mainly work for wealthy people with big houses. We work in Ireland, the Netherlands and Sweden, so have separate VAT registrations in each country. But is it correct that we can deregister and instead submit one quarterly return with the one stop shop (OSS) scheme?
A. You are correct to charge local VAT because the place of supply for land services is where you do the work.
An option has been available since 1 July 2021 of deregistering for VAT in each country and instead registering for the non-Union OSS scheme in an EU country of your choice. It makes sense to choose Ireland because of the common language. You will then submit a quarterly OSS return to the Irish tax authorities to account for the VAT you have collected from all of your EU customers.
The disadvantage of the OSS is that you will lose the opportunity to claim input tax on local VAT returns, although you can still recover VAT on your expenses by submitting a 13th Directive claim to each tax authority.
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